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How do I enter, deposit and apply a credit??

Received a credit from a vendor, I created a credit under "Enter Bills" for the amount and applied it to the right gl account. I have already paid the vendor and I will not be receiving anymore bills from them. They will be issuing me a check, how do I do the deposit and apply it to the credit, right now the credit is sitting in Account Receivables as a -$0.00 ?

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Best answer 03-11-2019

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Established Community Backer ***

"They will be issuing me a check, how do I do the deposit...

"They will be issuing me a check, how do I do the deposit"

Banking menu > Make Deposit, as "from AP" for the Vendor Name.

"and apply it to the credit

Open Pay Bills and this refund shows on the Open bills listing, and single-click it to apply the Available Credit against it, here.


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Established Community Backer ***

"They will be issuing me a check, how do I do the deposit...

"They will be issuing me a check, how do I do the deposit"

Banking menu > Make Deposit, as "from AP" for the Vendor Name.

"and apply it to the credit

Open Pay Bills and this refund shows on the Open bills listing, and single-click it to apply the Available Credit against it, here.


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Thanks,

Thanks,
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Thank you!  This explained how to post the vendor credit...

Thank you!  This explained how to post the vendor credit to the check received.  The actual vendor credit had the job name attached which allows us to track job material costs per client.
Established Community Backer ***

"The actual vendor credit had the job name attached which...

"The actual vendor credit had the job name attached which allows us to track job material costs per client."

Yes, in that condition, you cannot simply post this as a Deposit to the original expense account. Job reports rely on the use of Items, and you need to be able to Job Track that credit, which might even need to be marked as "Billable" (passed back to) the Customer:job. That's exactly what to first make the Vendor Credit; then, the refund is AP.
Established Community Backer ***

" right now the credit is sitting in Account Receivables...

" right now the credit is sitting in Account Receivables "

Vendors go through Accounts Payable, not Receivable.

Frequent Explorer *

Re: "They will be issuing me a check, how do I do the deposit...

Sorry, I need some baby steps here. It's been a long time since I used QuickBooks, and some of their methods are non very intuitive to me.

 

I have a similar situation. My husband paid a bill by Direct Debit (or Electronic Point of Sale Transfer, EPoST). Then he returned an item  returned an item and received an electronic refund straight into our bank account. Different transactions, and they need to show separately so that when I reconcile the bank account, I can see and mark both of them (one debit and one credit).

 

If I create a Credit through Vendor Bills, then the credit ends up sitting waiting for another bill to apply it aginst, which isn't what I need to have happen.

 

Then I thought I could do it with a General Journal entry, but that messes up my Sales Tax accounting.

 

Can some kind soul outline "baby steps" for me?

Moderator

Re: "They will be issuing me a check, how do I do the deposit...

I'm thrilled to help you out, MR_3. 

 

Don't get confused by how to record this transaction. It would be like a three step process.

 

First, create a bank deposit and use the A/P account for the electronic refund. Here's how: 

  1. Click on the Banking menu.
  2. Choose Bank Deposits
  3. Select the bank account from the Deposit To drop-down.
  4. In the first column, choose the vendor name. In the From Account column, choose Accounts Payable. Enter the amount.
  5. Click on Save and Close.

1.PNG

Second, record a Bill Credit for the refunded amount. 

  1. Click on Vendors menu.
  2. Choose Enter Bills
  3. Choose Credits.
  4. Enter the vendor name, choose the account/item used on the original Bill.
  5. Click on Save and Close

2.PNG

Third, link the deposit to the Bill Credit. 

  1. Click on the Vendors menu.
  2. Select Pay Bills.
  3. Check the deposit that matches the Vendor check amount.
  4. Select Set Credits and apply the Bill Credit you created earlier then click Done.
  5. Click Pay Selected Bills and Done.

3.PNG

You are all set up. You can now reconcile the correct cash flow for this vendor refund. Just in case you need to record another refund affecting inventory items, please check out this article for more help: Record a vendor refund in QuickBooks Desktop.


Please don't hesitate to post some more, MR_3. Have a great day! 

Frequent Explorer *

Re: "They will be issuing me a check, how do I do the deposit...

GarlynGay, thank you SOOO MUCH! Your description is very clear and thought out. I had looked at the Help topics, but they weren't as clear as your information.

Moderator

Re: "They will be issuing me a check, how do I do the deposit...

My pleasure, MR_3. 

Experienced Member

Re: "They will be issuing me a check, how do I do the deposit...

Hello.

I had a similar situation but the check was deposited with other customer payments. How do I match my bank deposit to the QB deposits? Thank you! 

QuickBooks Team

Re: "They will be issuing me a check, how do I do the deposit...

Hi KellyT1, 

 

Thanks for joining the thread. Based on your question, it sounds like you're looking to add and match bank feed transactions. Take a look at this article for how to do that in QuickBooks Desktop: Add and match Bank Feed transactions.

 

If you need additional assistance reaching your goal, please get in touch with our phone support team at 1-833-317-2226 from Monday to Friday, 9am - 8pm EST. If you're using QuickBooks Desktop Enterprise, phone support is available 24/7. 

I hope this helps you get back on track. Let me know if you have any questions. 

Cheers!